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Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
Application enablement   stephan massalt (kpn netco)
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Application enablement stephan massalt (kpn netco)

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  1. APIs and Business Model Transformation KPN Consulting 6 February 2013
  2. The agenda 2 06-02-2013KPN Strategic Innovation Key Challenges for Telco 2.0 Innovation What is Application Enablement How does it contribute to the business What have we done and where are we going Lessons learned and next steps
  3. The game for Telecom providers is rapidly changing This causes the break-up of the value chain and service fragmentation TELCO services Devices / ClientsConnectivityServices • Smartphones • Tablets • Apps • Laptops • M2M TELCO Network OTT services TELCO services Break-up of the value chain FRAGMENTED SERVICES FROM OLD GAME.. ..TO NEW GAME FRAGMENTED USER EXPERIENCE TELCO network 06-02-2013KPN Strategic Innovation3 KPN needs to develop an appealing strategy to cope with this
  4. We see the innovation game is shifting towards flexible, agile and low risk development of new services Telco’s are typically focussed on large scale controlled innovation Reduce Time to Market by using the open innovation power of 3rd parties Lower costs in developing and deploying new services Key opportunities New applications that substitute the traditional Telco value add services Growing number of OTT services that only need a bit pipe Key threats  ?  Size of the innovation project, and level of KPN control Required % of innovation successes >90% <20% High Low ?  ? ?   06-02-2013KPN Strategic Innovation4
  5. Telco's can add a set of different assets to its value chain Create and approach of ‘Building Blocks’ 5 06-02-2013KPN Strategic Innovation Messaging Mobile Fixed Billing CRM Subscriber info Cloud App Store Voice/ Telefony Location iTV Networks - Control - Status information - Data streaming Services - Device independency - Content Customer Data*) - Identity - Billing relation Distribution power - Consumers - Business KPN.com Account Mgt. KPN Store XL BSSOSS *) All under strict privacy compliancy rules
  6. So changing the way we interact with the innovation power outside is needed Meet Nigel, our first step into connecting with innovators outside 6 06-02-2013KPN Strategic Innovation
  7. The agenda 7 06-02-2013KPN Strategic Innovation Key Challenges for Telco 2.0 Innovation What is Application Enablement How does it contribute to the business What have we done and where are we going Lessons learned and next steps
  8. The IT landscape changes rapidly with dedicated apps APIs are widely and publicly available on the Internet The IT landscape is dominated more and more by small specialized Apps. Around the globe the number of available external interfaces (APIs) is growing explosive. These combined trends lead to a growth of applications that combine these into new functions and applications This way of innovation offers Telco's an opportunity to open up towards developers. 8 06-02-2013KPN Strategic Innovation
  9. We see three main areas of value in using APIs Various strategies to engage with the different developer segments Type of developers Examples Head Google, Spotify, Corporates Mid tail Gaming, Media, Specialists Long tail Garage developers and start-ups 06-02-2013KPN Strategic Innovation9 Revenue potential Head Mid tail Long tail 150 700 10,000+ Developer segments developers B2B B2C ExternalInternal Cost Savings New business opportunities New business models Process & IT Optimization Co Creation Open Data Community management Partner management IT management
  10. API Exposure Engine Services Adaption Layer Application Enablement platform: secure environment to expose APIs KPN internal systems and 3rd party system can be connected and exposed 10 Application Enablement Platform Service Orchestration SMS-C MMS-C M2MIMS 3rd party platforms BI Voicemail LBS Developer Portal Application Application Application Application Policies Security Compliancy & privacy Accounting Support Testing Projects Financials OutsideAppsKPNSystems iTV Network data External secure interface Internal trusted interface 06-02-2013KPN Strategic Innovation
  11. The agenda 11 06-02-2013KPN Strategic Innovation Key Challenges for Telco 2.0 Innovation What is Application Enablement How does it contribute to the business What have we done and where are we going Lessons learned and next steps
  12. DevelopersKPN Assets Applications/Services Application Enablement platform (Standard APIs) 3rd party services supermarket (3PSSM, SDP) Strong KPN value propositions Acceleration (partnerships, equity) 12 BUILDING THE 2SBM ECOSYSTEM Application Enablement is one step into the two-sided business model And supporting the KPN ambition as integrated access provider 06-02-2013KPN Strategic Innovation
  13. The agenda 13 06-02-2013KPN Strategic Innovation Key Challenges for Telco 2.0 Innovation What is Application Enablement How does it contribute to the business What have we done and where are we going Lessons learned and next steps
  14. We had a pilot platform up and running and working applications build on top Participation in various events to test our ideas and spread the word 14 • 11 pilot contracts signed • 2 Letters of Intent in the funnel • 2 Applications operational (BrightBird & Calendar42) • 1 Press release (BrightBird) Technology Voice iTV Identity Handset Info Customer Profiles QoS … SMS/MMS LBS Operator Billing • Implemented a pilot platform • Exposed 3 APIs based on the OneAPI standard • InApp Operator Billing ready end of June • Potential of new APIs to be explored APIs Business AmIHome: concept that uses API location based service to switch on/off lights and thermostats if you are not in the area of your home. • TNW Hack Battle (event) • ‘Stekkers van KPN’ (event) 48 people of 21 different companies attended the first ‘Meet up’ at KPN 06-02-2013KPN Strategic Innovation
  15. The pilot environment cannot scale, to set next step there is a need for a production environment But also a discussion started on our business focus… 15 Pilot functions Production requirements Technology • Reuse existing CallFactory infrastructure for small scale pilot • Selected number of developers and limited number of APIs (3). • Create an industry grade API exposure platform to connect a large number of developers and multiple API services Legal & Compliance • Pilot contracts with T&C and manual on boarding of partners. • Specific Opt-in process only usable for Location Based Services. • Online T&C for online on boarding of developers. • Generic Opt-In process for multiple services Business • Support of various models like: o transaction, o revenue share o freemium o multiple price plans • No mechanism in place to bill developers for their usage. 06-02-2013KPN Strategic Innovation
  16. The main challenge is addressing all the different segments Current insight is that a Telco is not suited to address all segments 16 Large Mid Small Revenuepotential/customer Developer segments Account Management Business Development & Partner Management Online Portal Events & International Partners Different type of APIs • Common standardized service (OneAPI) • Specific, more advanced API’s (IPTV) Relevance of Telco customer to developer • Able to address Telco customers via multiple channels (Google, Apple, etc.) Ownership of relation with developer • Who is in charge? • Segmentation 06-02-2013KPN Strategic Innovation
  17. SOCIAL ENERGY! Case Study 06-02-2013KPN Strategic Innovation17
  18. Social Energy! is an example of Open Data Co-Creation And top-10 finalist of the TEDx Amsterdam Award 2012 Social Energy! was born at the Hack Battle of The Next Web (2012). In 24 hours Developers created an application where ‘Rules’ could be set based on open data. • The thermostat lowers the temperature in the home when the mobile phone leaves the 6 km. perimeter of the house serving people who forget to do this manually. • The thermostat raises the temperature when the mobile phone is within the 6km perimeter. Result: Social Energy! saves energy costs for the consumer in an effortless way Two ingredients (API’s): - eThermostaat by Essent - Location data (LBS) by KPN The advantage to the end user: The thermostat lowers automatically when no one is home 06-02-2013KPN Strategic Innovation18
  19. The Open Data Collective is about: Initiators: • Open data and monetizing the value • Co-Creation sessions to define new useful data combinations • Explore new business models and revenue streams Goal of The Open Data Collective : - Learn, inspire and use the possibilities of open data Together we will work on: - Business models based on open data / open platforms - Data combinations resulting in market ready propositions based on combined data Joining the collective will lead to: - (unexpected) New propositions, new partnerships and a new customer base Timeline: Dec 2013Sep 2012 Inspire to open up data Oct 2012 Create proof and execute Jan 2013 First presentation of propositions and Business models Start Open data collective Invite Companies to Open Data Collective First testing of the propositions and Business models Go to market plan ready First Co-Creation session Dec 2012 Apr 2013 19
  20. The agenda 20 06-02-2013KPN Strategic Innovation Key Challenges for Telco 2.0 Innovation What is Application Enablement How does it contribute to the business What have we done and where are we going Lessons learned and next steps
  21. Next steps defined by our lessons learned so far Including the key challenge: time 21 06-02-2013KPN Strategic Innovation Transform KPN architecture based on: • Atomic Services • Detach services from network layers Align a distribution strategy together with the business segments • Leverage on a central portal • Innovation outsourcing Focus on B2B approach • Develop PoCs with enterprise customers • Participate in Open Data Collective • Find partners for a Long Tail strategy InternalExternal TechnologyBusiness Provide more valuable functions via APIs: • Cloud networking • Software Defined Networking • Big Data Insigths & Analytics
  22. For large companies it is a feasible strategy to let the outside world do their innovation Future innovations can only be done in collaboration between the larger companies 22 06-02-2013KPN Strategic Innovation

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